The Difference Between Consumer Math and Financial Literacy

Financial Literacy is more than simple Consumer Math. In high school, our students need a Consumer Math credit, but we offer them rich life skills when we go beyond that basic requirement and equip our teens with Financial Literacy.

The difference between Consumer Math and Financial Literacy is this:

Consumer Math is the study of practical mathematical techniques that are used in commerce and normal, daily life.

Financial Literacy is a course of study that equips students to use those same consumer math techniques, but also:

- equips them to understand the implications of attitudes toward money,

- teaches the vocabulary necessary to understand finance in the news,

- teaches them to observe and evaluate the use of money in the world,

- and encourages them to explore a variety of ways to make money, to invest money, to give money away, to save money, and to wisely spend money.

A Consumer Math credit teaches a student to understand an amortization schedule for a loan.

Financial Literacy prepares a student to decide when taking out a loan is a worthwhile risk and when it is simply foolish.

A Consumer Math credit teaches a student how to compare and take advantage of sale prices at a retail store.

Financial Literacy prepares a student to understand how the strategies used to set prices can also be employed by an individual in an entrepreneurial endeavor.

A Consumer Math credit explains, “This is HOW money works in this situation.”

Financial Literacy starts by explaining how money works in a situation and then goes on to reveal much more. “This is WHY money works that way, and you can apply that understanding to all sorts of life scenarios for greater financial success!”